Most networks give dynamic connections, which last for a relatively short period. To operate this, ATM can dynamically join a switched virtual circuit (SVC), allow it last as long as necessary and then close it.
The idea comes from the Telco's where switching system normally denotes to all switching.
ESTABLISHING AN SVC:
The computer transmit a connection request to the switch to which it is attached. Software in the switch select a network path to the destination and transmit along the connection request.
Every pair of switches in the path interacts to select a VPI/VCI for their tables. Once the connection is created by the destination, a message is transfer back to the originating device to show the SVC is ready.
If any switch or the receiver computer does not agree to setting up the VC, an error code is given back and the SVC is not created.